The Role and Nature of a Marketing Plan - Essay Example

Individual Reflective Essay: Marketing Plan Introduction Marketing is one of the most fundamental concepts that determine the success of any business. Dibb & Simkin (2008, p. 3), define marketing as an organisational function that involves a set of processes geared towards creating, communicating , providing value to customers and managing relationships with customers. Similarly, Shaw (2007, p. 1) notes that marketing is a management process that focuses on anticipating, identifying and satisfying the needs and requirements of consumers profitably. Developing an effective marketing plan holds the key to realising organisational success since it helps an organisation to determine the needs and wants of consumers in its target markets. According to Shaw (2007, p.4), a marketing plan is a written document that provides a blueprint for controlling and implementing an organisation’s marketing activities or strategies. It is without doubt that a marketing plan is one the most important tools for any marketer. The starting point of any marketing activity must be the marketing plan (Shaw 2007). The key aim of this essay is to explore the nature and characteristics of a marketing plan. Foremost, this essay will examine the role and nature of a marketing plan. It will also explore the relationship between a marketing plan and a business plan. Secondly, it will discuss the structure of a typical marketing plan and elements commonly found in a marketing plan and the purpose that these elements serve. Moreover, this essay will discuss the links between the various marketing plan elements. Lastly, this essay will explore some of the common assumptions or misconceptions of a marketing plan. The role and nature of a marketing plan Burke and Resnick (2000, p.114) describe a marketing plan as a blueprint that provides guidelines on how the marketing activities of a company are structured and implemented. According to Shaw (2007, p.4), a marketing plan is a written document that provides a blueprint for controlling and implementing an organisation’s marketing activities or strategies. Similarly, Westwood (2010 p.12) notes that marketing plan is a document that outlines a plan for marketing services or products. Westwood observes that a marketing plan outlines a company’s goals and objectives and provides strategies that can be used to achieve them. Based on these definitions, it is plausible to deduce that, a marketing plan is a comprehensively created plan that seeks to outline an organisation’s overall marketing strategies and activities through strategic and tactical planning within a given spun of time. A marketing plan plays a critical role in the overall success of a business or an organisation since it provides a blueprint that shows; what strategies the company will use to effectively promote its services or products to consumers. With regards to the role that marketing plans play in the success of businesses Tassiopoulos (2008, p. 132) notes that a marketing plan is an integral element of a business plan since it gives an indication of which market segment will buy a company’s products or services, how a company’s product or services will be promoted and the costs that will be incurred during this process. According Bowen (2003, p. 73) some of the key roles that a marketing plan plays include; providing a roadmap for marketing activities that a firm will undertake within a specific time spun, ensuring that marketing activities are in line with a firm’s corporate strategic plan and helping in the budgeting process to align marketing objectives with the available resources. Furthermore, Bowen notes that a marketing plan provides a framework that can be used to monitor expected results against the actual results that a company has realised within a particular time. A typical marketing plan comprises of well outlined strategies and tactics that can function both strategically and tactically. Strategically, a marketing plan depicts how the objectives set out by an organisation are going to be accomplished. For instance, “how will a car company sell 80 cars within a month?” The strategy for realising this goal may be outlined as: “In order to sell 80 cars within a month, the company will increase its distribution channels (Earls, 2011). In essence, strategies embedded within a marketing plan illustrate how an organisation will realise the goals and objectives that it has set out. Tactically, a marketing plan depicts the activities or “action items” that an organisation will employ when implementing its strategies. In practice, tactics are about the actual execution of strategies selected. For instance, if a strategy involves increasing distribution channels the tactics will entail choosing suitable channels and collaborating or working with distributors in each channel among many other tactics (Earls, 2011). There exists a close relationship between a marketing plan and a business plan. In some instances, a marketing plan may be confused for a business plan and vice versa. Tassiopoulos (2008, p. 132) notes that, a marketing plan is an integral element of a business plan. This shows that, a marketing plan is part or a component of a business plan. One of the key similarities between a business plan and marketing plan is that, both a marketing plan and a business plan are important aspects of a successful business. Basically, these plans enable businesses to organise their operations, they also act as benchmarks or guides to an organisation’s operations and activities. One can also argue that a marketing plan and a business plan are interdependent. These plans must be consistent with one another or else they are will be considered as impractical. For instance, a company’s business plans outlines the mission and goals of their business while the marketing plan depicts how the company will realise these mission and goals. In a scenario where the business plan is changed the marketing plan must also be changed since an effective marketing plan does not deviate from the objectives set out in the business plan (Smith & Media, 2012). Nevertheless, there are major differences between a marketing plan and a business plan. In principle, a typical business plan provides an overview of a business; this overview often includes information about the goals and mission of the business, staff or employees, location of the business, operations, financial aspects and marketing strategies. In most cases, a business plan is drafted so as to prove the value and viability of business to lenders or investors (Smith & Media, 2012). On the other hand, a marketing plan provides details of an organisation’s marketing activities or strategies. A marketing plan often describes the target market of a product or services, market size, nature of competition in a market, pricing strategy, potential distribution channels and the promotion strategies that will be used to market a service or product. In most cases, a marketing plan is drafted so as to enable an organisation to fine –tune its services or products so as to meet the demands of consumers and gain a competitive advantage over competitors (Shaw 2007; Tassiopoulos, 2008). Elements of a Marketing Plan There is no universal standard for developing or writing a marketing plan. Marketing plans differ in a number of ways depending on the nature of a business, type of product or service and the nature of a particular market. However, a typical marketing plan comprises of the following basic elements; Executive summary, Business Description, Situational Analysis (comprising of subsections such as; consumer analysis, competitor analysis and SWOT Analysis), Marketing objectives, Marketing Strategies (comprising subsections such as segmentation, targeting, positioning, 4p’s of marketing mix (product, place, promotion, place) and Implementation (comprising of subsections such as budget, control and evaluation and time frame. This essay section will focus on discussing these elements of a marketing plan with regards to their purpose, their components and source of information. Executive Summary The first element of marketing plan is an executive summary. An executive is a synopsis or summary of the entire plan, it summarizes the key aspects of the marketing plan without providing details. The key aim of an executive summary is to provide the reader with key information about the marketing plan without necessarily reading the entire document. Although it occurs at the beginning of the plan, it is often written last because it is impossible to effectively summaries key information in the plan before the plan is finalised (Cohen 2006, p.3). Business Description Although a marketing plan does not describe specific details regarding the nature or operations of a business like a business plan, it is always important for the plan to describe in brief the service or products that the particular company provides. This section also highlights the vision and mission of the business. Lamb, Hair & McDaniel (2008p. 34) observe that the foundation of any effective marketing plan is the company’s mission or vision statement. A company’s vision or mission statement provides information on what the business does and its key goals. This section may also incorporate information on a company’s resources and capabilities. Information provided in this section is important since it provides the reader with background information on what the business does and the type of products and services that it provides. This information is often obtained from the company’s business plan or website. Situational Analysis It is crucial for marketers to comprehend the nature of the environment that their products or services will be promoted in (Lamb et al, 2008, p.35). Thus it is crucial for a marketing plan to incorporate a situational analysis on the nature of a market. This element of a marketing plan provides an overview of the existing market situation. It comprises of subsections such as; consumer analysis, competitor analysis and a SWOT Analysis detailing the viability of the market. The consumer analysis section provides information on the type of consumers present in a particular market, their needs and demands. This section may also highlight how demographic, geographic, psychographic, behavioural and psychological factors determine consumer needs and demands. The competitor analysis section outlines possible competitors or rivals in the market, the leverage that these competitors have in the market and the possible effects that these competitors may have on the performance of the company in the purported market. In addition to this, a situational analysis may involve the use the SWOT analysis framework to determine the viability of a particular market. The SWOT analysis may be used to analyse the strengths, weaknesses, opportunities and threats of a venturing into a particular market (Tassiopoulos (2008, p. 135). Information provided in this section can be obtained through an in-depth market research. Marketing Objectives This section states the key objectives of the marketing plan in relation to what is to be accomplished through various marketing activities. Lamb et al (2008, p.36) note that detailing the objectives of the marketing plan is crucial since without specific objectives, there is no sound basis of evaluating the effectiveness of a marketing plan. Lamb et al further observe that effective marketing objectives are specific, measurable, realistic, time specific and comparable to a benchmark. This information is often obtained from the company’s business plan or website. Marketing strategies This is one of the most important elements of marketing plan since it provides the specific details of how marketing will be conducted and the approaches of tactics to be employed. In this section key marketing concepts such as Segmentation, Targeting and Positioning (STP) strategies and the 4P’s of marketing mix (product, price, place and promotion) are discussed in-depth. The segmentation sub-section section describes how the market will be segmented into different groups based on similar consumer needs, trends and characteristics in order to effectively target consumers by providing products or services that meet their specific needs (McDonald & Dunbar, 2004). The targeting sub-section provides details on the specific marketing approaches that will be used to appeal to the specific needs of the identified consumer market segments. On the other hand, the positioning section describes the process through which the marketers will use to create an image or impression in the minds of consumers about a product or a service (Lamb, Fair & McDaniel, 2011). Moreover, the 4P’s of marketing mix can be included in this section. Basically, the 4P’s represent; product, price, place and promotion. The product sections describes the service or product that a company is offering to the market in order to meet the needs and wants of consumers. Some of the aspects of product discussed in this sub-section include; packaging, brand name, features and varieties (Clarke, 2000). The price section describes and justifies the pricing strategy that the company will use or attach to its products or services. Moreover, the placing section described the distribution channels that will be used to deliver products or services more efficiently to consumers (Clarity 2005). The final aspect of this marketing mix provides details on the promotional strategies that will be used to inform or persuade potential customers about the qualities, price, features, benefits or location of a particular service or product (Botten 2009). The final element in a marketing plan is the implementation. This section provides details on how the marketing plan will be executed. It touches on aspects such as finances by providing budget estimates. It also provides a specific time frame for implementing different activities in the marketing plan. Additionally, this section outlines how control and evaluation of the marketing plan will be carried out in order to realise positive outcomes (Tassiopoulos, 2008). Links between marketing plan elements The different elements that make up a marketing plan are not separate entities rather, some of these elements are interdependent. For instance, the objectives set out in a marketing plan, determine or influence the marketing strategies or the marketing mixes used. In this case, the marketing objectives set out in the previous stages of the plan will determine which target market the marketing exercise will focus on, how the product or service will be positioned and the promotion strategies that will be used to realise the set objectives (Tassiopoulos, 2008). When it comes to the marketing mix, it is evident that the 4p’s are interconnected and interdependent. For example, the type of product or service that a company chooses to market will determine the pricing, placing and promotion strategy to be used. Moreover, the targeting, positioning and segmentation of products or service is connected with the situational analysis. Generally, the situational analysis identifies the opportunities within a particular market. The targeting, positioning and segmentation of products or services are often based on the findings of the situational analysis which often highlights possible opportunities within the market (Lamb, Fair & McDaniel, 2011). One can also argue that, the executive summary is interconnected with all elements of the marketing plan since it provides a summary of the key elements highlighted in the plan. Common Assumptions One of the key misconceptions about a marketing plan is that, it is the same as a business plan. A number of people tend to mistake marketing plans for business plans. However, as established earlier in this essay, a business plan provides an overview of a business in relation to its goals, mission, staff or employees, location of the business, operations, financial aspects and marketing strategies (Smith & Media, 2012). On the other hand, a marketing plan provides details of an organisation’s marketing activities or strategies. Another misconception about a marketing plan is that, it has to be long and very elaborate. Nevertheless, a marketing plan does not have to be too long or complex, it can be short and simple (Tassiopoulos, 2008). Conclusion This essay has examined the nature and characteristics of a marketing plan. It is established in this essay that a marketing plan is a comprehensively created plan that seeks to outline an organisation’s overall marketing strategies and activities within a given spun of time (Burke and Resnick 2000; Shaw, 2007; Westwood 2010). Moreover, it is established in this essay that some of the common elements in a marketing plan include; an executive summary, situational analysis, marketing objectives, marketing objectives and an implementation plan. Some of these elements are interconnected since they influence each others outcomes. In addition, this essay highlights that some of the misconception or assumptions about a marketing plan is that it is the same as a business plan and it should be long and complex. References Botten, N. (2009). CIMA Official Learning System Enterprise Strategy. Amsterdam: Elsevier. Bowen, J. (2002). “Benefits of marketing plan”. Gaming Research & Review Journal 6(2): 73. Burke, J. & Resnick, B. (2000). Marketing and selling the travel product. 2nd ed. New York: Continuum. Clarke, G. (2000). Marketing a service for profit: A practical guide to key service marketing concepts, New York: Kogan Page. Cohen, W. (2006). The marketing plan. New York: Wiley & Sons. Dibb, S. & Simkin, L. (2008). 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